Last time around, Draghi hinted at a fresh round of rate cuts. Nothing happened. In today's press conference, he will likely hint at it again, and nothing will happen once more: for now the ongoing threat of a Spanish bailout (now in its 6th month) has pushed Spanish 2 year yields to the lowest level since 2010, which means the ECB is safely out of the picture for a while, or at least until the Spanish social security funds runs out of all cash to buy Spanish bonds. Only then, will the ECB be forced out of hibernation.
- advertisements -